Denver Facing $190 Million Budget Shortfall For 2021

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DENVER (CBS4)- The coronavirus pandemic is taking a toll on the Denver city budget. Denver Mayor Michael Hancock and the city's financial team presented the grim financial forecast for next year.

The mayor said Denver hasn't seen a drop in revenues like this since the middle of the Great Depression.

(credit: CBS)

Revenue from the lodging tax is down 66%. Overall the city is facing a $190 million budget shortfall for 2021.

To close the gap, Hancock proposed using $94 million from reserves, freezing new hires and requiring city employees to take 6 to 9 furlough days depending on their salary and position.

The city is trying to avoid cutting jobs.

"This city workforce makes up 70% of our general expenditure," said Hancock.

City officials believe Denver's economy will not return to pre-pandemic levels until 2022 at the earliest.